Loading...
HomeMy WebLinkAbout08012011 City Council Work Session Notes - Electric/Parking Enterprise Fund SMR/ 27 piq UJfriL,fl1eP U � � 1 A . U <--Dp9ft x / O 9 i- ( j(Cft e-4pP.A= -0 pail 7r-r:;)I d )1 .-`00)/i.olifi vpad (Toe r14 r :did 1 tv/9 ,or-1,0440 14/7 -W19 MO 4,4,1 o if:z v1V.)7) TACTVW9J//11 kr10-010dw:d°a14\ L y) Q-e { -e1 off' J 51/fQ.twaYi s o_ p-i a9.1,q d ************************** ****************4******* :**:� :Jq PaItEo . 1)i;W/ ARM \ipaerYin r 6-01 u i : uasa ,j s.zaquia jia noD • 3 0/1-•ii_MR ud :asodmd Cird' Vdi )70, 7 ,( i)- -(yq SJION NOIssas xmom ‘•4, City of Seward Capital Requirements & Funding Strategies for Electric Enterprise Fund 41* Purpose This Presentation is to discuss the financial and system challenges of the electric department and present suggestions on the direction of the department for 2012 and 2013 . 2 6406, :8% Electric Balance ect c as Electric Fund Cash Balance History Electric Enterprise Fund - Cash Balance Balance at December 31, 200X Electric Fund MRRF # months' Cash Cash Cash Total 2000 2,862,494 676,664 8.5 '$ 3,539,158 2001 2,729,835 920,884 5.1 r$ 3,650,719 2002 3,072,100 840,884 5.8 '$ 3,912,984 2003 3,825,039 840,884 7.7 '$ 4,665,923 2004 3,260,064 1,340,884 5.5 '$ 4,600,948 2005 3,647,834 645,080 5.9 '$ 4,292,914 2006 2,394,025 1,377,942 3.1 '$ 3,771,967 2007 2,706,708 1,317,765 4.1 r$ 4,024,473 2008 3,103,126 838,105 4.5 '$ 3,941,231 2009 $ 1,334,884 $ 874,234 1.5 r$ 2,209,118 2010 $ (233,894) $ 387,761 -0.3 '$ 153,867 5.0(10.(X)() - 7.7 5.5 # months' cash 5.9 5.8 "- 3.1 4.1 4.5 4,000,0)0 8.5 5.1 — a,:�' 3,000,000 - -�— — — — — 2,00),0)0 — — ■MRRF 0.3 0 Electric Fund — -1,00),0)0 — 1111111111 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3 (1,000,000) - lbw- r- - -1 ' - ,,,.., Electric Capital Needs Critical High Moderate ARCTEC Total 2012 $ 1,005,000 $ 50,000 $ - $ 360,000 $ 1,415,000 _ 2013 835,000 380,000 - 1,000,000 $ 2,215,000 _ 2014 440,000 180,000 480,000 1,000,000 $ 2,100,000 2015 - 1,000,000 140,000 1,000,000 $ 2,140,000 2016 - 2,000,000 - 240,000 '5 2,240,000 2017 - 2,000,000 - '5 2,000,000 2018 - - 1,153,000 $ 1,153,000 2019 - - 475,000 $ 475,000 2020 - - - '5 2021 - - - '5 $ 2,280,000 $ 5,610,000 $ 2,248,000 $ 3,600,000 $ 13,738,000 Electric Repairs & Replacement of Existing Assets 2,500,000 2,000,000 — 1,500,000 — ❑ARCTEC 1,000,000 0 Moderate ■High 500,000 ■Critical 0 4 Status of Depreciation Reserves Electric = $423 ,889 in MRRF vs historic cost of assets of $56.4 million* ; $31 million end of useful life Electric Outstanding Debt End of 2010 ELECTRIC FUND OUTSTANDING DEBT AT 1/1/11 Interest Annual Annual Debt Issue Rate Balance at 1/1/11 Principal Interest Maturity 1995 Transmission Line Bond 2.95% - 3.88% $ 1,245,000 235,000 41,250 June 2015 2008 Generator Project 5.25% - 6.00% $ 5,815,000 115,000 276,561 June 2038 $ 7,060,000 $ 350,000 $ 317,811 6 . , , , ..„. . ..,,,,,,,„ „„id Capital Projects Completed o Lowell PointUnderground - $310,447 o Transmission Linerepairs - $452,688 H-Structure (T229) Damaged Pole (TN67) Burned Pole (T265) ConductorRepair (Wire Frayed Out T222-T223) o Transmission Line Reroute - $494,067 RI McDonald Underground - $25,000 TOTAL = $ 1 ,282,202 Projects Started Not Yet Completed � Right Of Way (ROW) Clearing A Transmission to Fort Raymond Substation A Substation PT Protection Scheme Z Float and Coast Guard Relocate (Construction only) DOT Three Bridges (Construction only) 8 Critical Capital Needs 2012-2017 Likely to Fail in the Next 5 years, must be accomplished - Going underground by Lagoon - $450,000 (�� Right of Way Clearing - $750,000 Jesse Lee Underground - $30,000 � Camelot Underground - $ 150,000 � Transformer Renovation Fort Raymond - $200,000 � Paint Transformers and Substation Equipment - $ 120,000 9 gr _ .. _ .•'c- 7..,.`.# � M ¢ • '. -•'�+` r � ; CriticalCapital Likely to Fail in the Next 5 years, must be accomplished - Exhaust Stack and Roof Generator 3 - $360,000 Meter Relay and View Screen - $20,000 J SMIC underground - $ 105,000 4 Transformer Renovation Spring Creek - $200,000 4 Sectionalized Pole Replacement — Price Varies, Generally $ 17,000 per pole TOTAL = $2,385,000 10 If we do not fund Critical needs : e Expect multiple failures and/or running generators more frequently e Long outage times for residents and businesses e Higher fuel costs for running the backup generators High Risk Capital Needs 2017 - 2022 Likely to fail within 5- 10 years o Old Mill #3 - $ 120,000 o Gateway (Upper) - $ 180,000 o Gateway (Lower) - $80,000 o Woodland Hills - $ 120,000 o Lost Lake Underground - $55 ,000 o Software for inventory - $50,000 High Risk Capital Needs 2017 -2022 Likely to fail within 5-10 years ❑ Wire Reel - $5,000 ❑ Downtown Alley 2nd and 3rd install underground - $ 1 ,000,000 (install overhead - $500,000) ❑ Downtown Alley 3rd and 4th install underground - $2,000,000 (install overhead - $ 1 ,000,000) ❑ Downtown Alley 4th and 5th install underground - $2,000,000 (install overhead - $ 1 ,000,000) TOTAL = $5,610,000 13 f �r Moderate Risk Needs 2012-2022 Nearing or Past Previously Estimated Life Expectancy ❑ Lawing Poles - $25 ,000 ❑ Victor Creek Poles - $ 110,000 ❑ Lake Drive (Stony Creek) - $ 140,000 ❑ Questa Woods - $80,000 ❑ AVTEC Underground - $ 15 ,000 ❑ Southwest Boat Ramp - $33 ,000 ❑ Lawing to Victor Creek Overhead - $75 ,000 14 M �dera Risk Needs 2( } 12- ■ 2022 Nearing or Past Previously Estimated Life Expectancy 0 Update Fort Raymond Controls - $450,000 o Security Upgrades to Substations - $ 130,000 o Automatic Meter Reading (AMR) - $950,000 o Switch at Nash Road - $ 100,000 TOTAL = $2, 108,000 15 Summary of All Capital Improvement Needs (No Funding to New Projects) ❑ Critical Risk - $2,385 ,000 o High Risk - $ 5 ,610,000 o Moderate Risk - $2, 108,000 16 Summary of ARCTEC $4 ,000 ,000 o PT phase protection o Generator 3 silencer and roof o Move generator 4 into the new building o Move generator 5 into the new building o Update and modernize controls to allow more flexibility in starting and running generators o Office/Warehouse Projects Requiring Funding to Complete ❑ Converting Fort Raymond substation to 115kV from 69kV $ 12,000,000 This must be done to sync with the rest of the Railbelt system Currently steps down at Lawing Substation A higher voltage transmission line would mean less losses in transit 18 Projects Requiring Funding to Complete ❑ Complete Transmission Line Into Substation $ 1 ,500,000 Sixteen structures to complete (past life expectancy) Potentially funded through ARCTEC When substation ready will give us the ability to receive 115kV 19 Projects Requiring Funding to Complete o Pole Barn $200,000 Allows us to cover equipment and materials During Winter Months makes response time faster Saves money for electric department 30 year at $200,000 = $6,700 per year Average pole price $ 1 ,000 / Newest Bucket Truck $450,000 / Backhoe $90,000 20 Potential Revenue Options ❑ Grant funds ❑ Assessment Districts for distribution service areas ❑ Service assessment for Right of Way clearing ❑ Higher rates for higher usage ❑ ARCTEC (for generation and transmission) ❑ Revise on/off fees for part time residents 21 �a Recommendation - $ 1 ,086,356 approximate increase in revenues per year ❑ An increase to all rates of 7% + 3 % CPI in 2012 and an increase to all rates of 2% + 3% CPI in 2013 . o Allow Railroad special contract to expire placing the service into Large General Finance (LGS) o Increase the Icicle Seafood' s and Sealife Center' s special contracts the same as other rates 22 Rate Increase Examples Bills (July 2011 Rates) ❑ Residential (600 kWh) 2012: From $115.49 To $ 123.08 2013: From $123.08 To $ 127.26 ❑ Small General ( 1500 kWh) 2012: From $303.26 To $323.70 2013: From $323.70 To $334.94 ❑ Railroad (Special contract to Large General — 100,000 kWh & 750KW) 2012: From $19, 102.38 To $24,324. 19 2013: From $24,324. 19 To $25,210.86 23 , , •,• . -71 " • '7, - • '4411111 The precarious position of the electric department Yd 24 2011 ELECTRIC RATE COMPARISON TABLES TABLE OF CONTENTS RAILBELT RATE COMPARISONS Pages 3-7 Residential Page 3 Small General Service Page 4 Large General Service (Secondary) Page 5 Large General Service (Primary) Page 6 Industrial & Seward Special Contracts Page 7 RAILBELT EXAMPLE MONTHLY BILL COMPARISONS Pages 8-12 Residential Page 8 Small General Service Page 9 Large General Service (Secondary) Page 10 Large General Service (Primary) Page 11 Industrial & Seward Special Contracts Page 12 SEWARD RATE COMPARISON (5%, 10% & 10%+5% INCREASE) Page 13-15 Residential Page 13 Small General Service Page 14 Large General Service Page 15 SEWARD EXAMPLE MONTHLY BILL COMPARISON (5%, 10 % & 10%+ 5% INCREASE) Page 16-18 Residential Page 16 Small General Service Page 17 Large General Service Page 18 JOHN BIRD 2011 RECOMMENDATIONS FOR DISCUSSION Page 19 2 TABLE la: RESIDENTIAL ELECTRICITY RATE COMPARISON (JULY 2011 RATES) RESIDENTIAL SEWARD HOMER North HOMER South CHUGACH ML&P GVEA MEA Kachemak Bay Kachemak Bay (Single Phase) CUSTOMER $16.54 $11.00 $11.00 $8.00 $6.56 $17.50 $5.65 CHARGE (MONTHLY)*** 2 1 SEASONAL SERVICE CHECK (ANNUALLY) $67.80** 1. ENERGY $.09901 $.14622 $.15011 $.07084 $.09856 $.08791 $.10244<1300KWH CHARGE/ <800KWH <600KWH $.08324>1300KWH KWH*** $.13291 $.15863 >800KWH >600KWH 6 3/4 2/1 8 5 2. FUEL ADJUST $.065908 $.04307 $.04307 $.05741 $.01683 CHARGE/ Adjusted Non-contract Non-contract Adjusted Quarterly KWH Monthly customers** customers** Quarterly 3. PURCHASE POWER CHARGE/ KWH $.00575 $.04780 4. REGULATORY CHARGE/ NA $.000492 $.000492 $.000492 $.000492 $.000492 KWH TOTAL CHARGE $.146712/ $.150602/ $.150732/ per KWH*** $.164918 $.133402 $.159122 $.134492 $.115882 $.19734* $.131532 (1+2+3+4) 2 6/8 7 10 1 * Includes Fuel & Purchased Power & Regulatory Charge ** Not Included *** Ranked Highest to Lowest Charges (Black - Higher Than Seward, Blue - Seward & Red - Lower Than Seward) 3 TABLE lb: SMALL GENERAL SERVICES ELECTRICITY RATE COMPARISON (JULY 2011 RATES) SMALL GENERAL HOMER North HOMER South MEA SERVICE SEWARD Kachemak Kachemak CHUGACH ML&P GVEA (Three-Phase) Bay Bay CUSTOMER CHARGE $33.08 $150.00 $40.00 $17.00 $12.88 $20.00 $13.37 (MONTHLY)*** 3 1 2 7 4 13 1. ENERGY CHARGE/ $.11421 $.11156 $.14651<3,000 $.05074 $.0955 $.08712 $.06510 KWH*** KWH $.13198>3000 KWH 3 1/2 7 2. FUEL ADJUST $.065908 $.04307 $.04307 $.05741 $.01683 $.04780 CHARGE/ Adjusted Non-contract Non-contract Adjusted Quarterly KWH Monthly customers** customers** Quarterly 3. PURCHASE POWER CHARGE/ KWH $.00575 4. REGULATORY $.000492 $.000492 $.000492 $.000492 $.000492 CHARGE/KWH TOTAL CHARGE per $.180118 $.112052 $.147002/ $.114392 $.112822 KWH***(1+2+3+4) $ 132472 $.19655 $.113392 2 8 3/4 5 1 6 DEMAND CHARGE/KW*** $7.7386 $7.7386>10KW $5.27 1 2 3 * Includes Fuel & Purchased Power & Regulatory Charge ** Not Include *** Ranked Highest to Lowest Charges (Black - Higher Than Seward, Blue - Seward & - Lower Than Seward) 4 TABLE lc: LARGE GENERAL SERVICE (SECONDARY) ELECTRICITY RATE COMPARISON (JULY 2011 RATES) LARGE GENERAL SEWARD HOMER HOMER South CHUGACH ML&P GVEA MEA SERVICES (LGS) SECONDARY Kachemak Bay CUSTOMER CHARGE*** $33.08 $150.00 $40.00 $55.00 $44.15 $30.00 $13.37 (MONTHLY) 5 1 4 2 3 6 1. ENERGY $.05566 CHARGE*** $.08181 (1st $.11156 $.14651<3,000KWH $.02496 $.04728 $.06510 200KWH/KW) $.13198>3000KWH $.04891 (Additional KWH) 4 3 1/2 7 2. FUEUPOWER $.065908 $.04307 $.04307 $.05741 $.01683 $.04780 ADJUSTMENT Adjusted Monthly Non-contract Non-contract Adjusted Quarterly CHARGE customers** customers** Quarterly 3. PURCHASED POWER CHARGE $.00575 4. REGULATORY NA $.000492 $.000492 $.000492 $.000492 $.000492 CHARGE TOTAL $.147718/ $.112052 $.147002/ $.088612 $.072982 $.15671* $.113392 CHARGE/KWH*** $.114818 $.132472 (1+2+3+4) 2/5 7 =/4 9 1 DEMAND $14.49 $7.7386 $7.7386>10KW $11.45 $12.33 $10.79 $5.27 CHARGE/KW*** 1 2 * Includes Fuel & Purchased Power & Regulatory Charge ** Not Included *** Ranked Highest to Lowest Charges (Black - Higher Than Seward, Blue - Seward & ` - Lower Than Seward) 5 TABLE Id: LARGE GENERAL SERVICES (PRIMARY) ELECTRICITY RATE COMPARISON (JULY 2011 RATES) LARGE GENERAL HOMER South SERVICES SEWARD HOMER Kachemak Bay CHUGACH ML&P GVEA MEA (LGS) PRIMARY CUSTOMER $33.08 $150.00 $40.00 $55.00 $159.55 $30.00 $13.37 CHARGE***(MONTHLY) 5 2 4 3 1 ;% 1. ENERGY CHARGE*** $.08181 (1st $.11156 $.14651<3,000KWH $.05361 $.04728 $.06510 200KWH/KW) $.13198>3000KWH $.02567 $.04891 (Additional KWH) 4 3 1/2 6 7 $.065908 $.04307 $.04307 $.05699 $.01683 $.04780 2. FUEUPOWER Adjusted Non-contract Non-contract Adjusted Quarterly ADJUSTMENT CHARGE Monthly customers** customers** Quarterly 3. PURCHASED POWER CHARGE $.00571 4. REGULATORY NA $.000492 $.000492 $.000492 $.000492 $.000492 CHARGE TOTAL CHARGE/KWH *** $.147718/ $.112052 $.1470021 $.088862 $.070932 $.15671* $.113392 (1+2+3+4) $.114818 $.132472 2 1 DEMAND CHARGE/KW*** $14.49 $7.7386 $7.7386>10KW $11.83 $13.85 $10.79 $5.27 * Includes Fuel & Purchased Power & Regulatory Charge ** Not Included *** Ranked Highest to Lowest Charges (Black - Higher Than Seward, Blue - Seward & - Lower Than Seward) 6 TABLE le: INDUSTRIAL OR SEWARD SPECIAL CONTRACT RATES ELECTRICITY RATE COMPARISON (JULY 2011 RATES)* INDUSTRIAL HOMER GVEA SEALIFE ICICLE AKRR CONTRACT CONTRACT CONTRACT CUSTOMER CHARGE $1,250.00 $295 $31.50 $33.08 $33.08 (MONTHLY)*** 1 2 3 3 3 1. ENERGY $.06601 $.02221 $.00821 $.00821 $.04011 CHARGE/KWH*** 1 3 1 2 2. FUEUPOWER ADJUSTMENT $.065908 $.065908 $.065908 CHARGE Monthly Monthly Monthly $.04307 3. PURCHASED Non-contract POWER CHARGE customers** 4. REGULATORY CHARGE $.000492 TOTAL $.066502 $.13164* $.074118 $.074118 $.106018 CHARGE/KWH*** (1+2+3+4) 1 1 - 2 DEMAND $20.2753 $17.27 $11.85 $11.85 $11.29 CHARGE/KW*** 1 2 3 3 * Includes Fuel & Purchased Power & Regulatory Charge ** Not Included *** Ranked Highest to Lowest Charges (Black - Higher Than Seward, BI ue — Seward & Than Seward) 7 TABLE lf: MONTHLY BILL COMPARISON (RESIDENTIAL) (BASED ON 600KWH/MONTH) CITY EXAMPLE ELECTRICITY BILL* $/% Difference** RANKING*** SEWARD $16.54 + ($.164918 x 600) = $115.49 2 HOMER NORTH KACHEMACH BAY $11.00 + ($.146712 x 600) = $99.03 -$16.46 (-14%) 4 HOMER SOUTH KACHEMACH BAY $11.00 + ($.150602 x 600) = $101.36 -$14.13 (-12%) 3 CHUGACH $8.00 + ($.134492 x 600) = $88.70 -$26.79 (-23%) 6 ML&P $6.56 + ($.115882 x 600) = $76.09 -$39.40 (-34%) 7 GVEA $17.50 + ($.19734 x 600) = $135.90 +$20.41 (+18%) 1 MEA $5.65 + ($.150732 x 600) = $96.09 -$19.40 (-17%) 5 * Customer Charge + (Total Charge/KWH x # KWH) = Monthly Bill ** Compared to Seward *** Ranked Highest to Lowest Bill (Black - Higher Than Seward, Blue — Seward & Red — Lower Than Seward) 8 TABLE lg: MONTHLY BILL COMPARISON (SMALL GENERAL SERVICE) (BASED ON 1500KWH/MONTH) CITY EXAMPLE ELECTRICITY BILL* $/% Difference** RANKING*** SEWARD $33.08 + ($.180118 x 1500) = $303.26 5 HOMER NORTH $150.00 + ($.112052 x 1500) + KACHEMACH BAY ($7.7386 x 25) = $510.54 +$207.28 (+68%) 1 HOMER SOUTH $40.00 + ($.147002 x 1500) + $7.7386 KACHEMACH BAY x (25 - 10) = $376.58 +$73.32 (+24%) 2 CHUGACH $17.00 + ($.114392 x 1500) = $188.59 -$114.67 (-38%) (i ML&P $12.88 + ($.112822 x 1500) = $182.11 -$121.15 (-40%) 7 GVEA $20.00 + ($.19655 x 1500) = $314.83 +$11.57 (+4%) 3 MEA $5.65 + ($.113392 x 1500) + ($5.27 x 25) = $307.49 +$4.23 (+1%) 4 * Customer Charge + (Total Charge/KWH x # KWH Used) + (Demand Charge/KW x KW) = Monthly Bill ** Compared to Seward *** Ranked Highest to Lowest Bill (Black - Higher Than Seward, Blue — Seward & — Lower Than Seward) 9 TABLE lh: MONTHLY BILL COMPARISON (LARGE GENERAL SERVICE - SECONDARY) (BASED ON 21,000KWH/MONTH & 50 KW) CITY EXAMPLE ELECTRICITY BILL* $/% Difference** RANKING*** SEWARD $33.08 + ($.147718 x 10,000) + ($.114818 x 11,000) + ($14.49 x 50) = $3,497.76 HOMER NORTH $150 + ($.112052 x 21,000) + ($7.7386 KACHEMACH BAY x 50) = $2,890.02 -$607.74 (-17%) HOMER SOUTH $40 + ($.147002 x 3,000) + ($.132472 KACHEMACH BAY x 18,000) + ($7.7386 x 50 - 10) = $3,175.06 -$322.70 (-9%) CHUGACH $55 + ($.088612 x 21,000) + ($11.45 x 50) = $2,488.35 -$1,009.41 (-29%) ML&P $44.15 + ($.072982 x 21,000) + ($12.33 x 50) = $2,193.27 ' 1,304.49 (-37 c' GVEA $30 + ($.15671 x 21,000) + ($10.79 x 50) = $3,860.41 +$362.65 (+10%) MEA $13.37 + ($.113392 x 21,000) + ($5.27 x 50) = $2,658.10 -$839.66 (-24 * Customer Charge + (Total Charge/KWH x # KWH Used) + Demand Charge/KW x #KW = Monthly Bill ** Compared to Seward *** Ranked Highest to Lowest Bill (Black - Higher Than Seward, Blue— Seward & — Lower Than Seward) 10 TABLE li: MONTHLY BILL COMPARISON (LARGE GENERAL SERVICE - PRIMARY) (BASED ON 21,000KWH/MONTH & 50KW) CITY EXAMPLE ELECTRICITY BILL* $/% Difference** RANKING** SE WARD $33.08 + ($.147718 x 10,000) + ($.114818 x 11,000) + ($14.49 x 50) = $3,497.76 HOMER NORTH $150 + ($.112052 x 21,000) + ($7.7386 KACHEMACH BAY x 50) = $2,890.02 -$607.74 (-17%) HOMER SOUTH $40 + ($.147002 x 3,000) + ($.132472 KACHEMACH BAY x 18,000) + ($7.7386 x 50 - 10) = $3,175.06 -$322.70 (-9%) CHUGACH $55 + ($.088862 x 21,000) + ($11.83 x 50) = $2,512.60 -$985.16 (-28%) ML&P $159.55 + ($.070932 x 21,000) + ($13.85 x 50) = $2,341.62 -$1,156.14 (-33%) GVEA $30 + ($.15671 x 21,000) + ($10.79 x 50) = $3,860.41 +$362.65 (+10%) 1 MEA $13.37 + ($.113392 x 21,000) + ($5.27 x 50) = $2,658.10 -$839.66 i * Customer Charge + (Total Charge/KWH x# KWH Used) + Demand Charge/KW x #KW = Monthly Bill ** Compared to Seward *** Ranked Highest to Lowest Bill (Black - Higher Than Seward, Blue — Seward & Red — Lower Than Seward) 11 TABLE lj: MONTHLY BILL COMPARISON (INDUSTRIAL & SEWARD SPECIAL CONTRACTS) (BASED ON 100,000KWH/MONTH AND 700KW) CITY EXAMPLE ELECTRICITY BILL* $/% Difference** RANKING*** SEWARD SEALIFE $31.50 + ($.074118 x 100,000) + CONTRACT ($11.85 x 700) = $15,738.30 SEWARD ICICLE $33.08 + ($.074118 x 100,000) + CONTRACT ($11.85 x 700) = $15,739.88 +$1.58 (0%) 4 SEWARD AKRR $33.08 + ($.106018 x 100,000) + CONTRACT ($11.29 x 700) = $15,837.88 +$99.58 (+1%) 3 HOMER $1,250 + ($.066502 x 100,000) + ($20.2753 x 700) = $22,092.91 +$6,354.61 (40%) 2 GVEA $295 + ($.13164 x 100,000) + ($17.27 x 700) = $25,548 +$9,809.70 (+62%) 1 * Customer Charge + (Total Charge/KWH x # KWH Used) + Demand Charge/KW x #KW = Monthly Bill ** Compared to Seward Sealife Contract *** Ranked Highest to Lowest Bill (Black - Higher Than Seward, Blue — Seward & ecl — Lower Than Seward) 12 TABLE 1k: SEWARD RESIDENTIAL MONTHLY RATE COMPARISON (5 AND 10% RATE INCREASE) RESIDENTIAL 2011 2011 +5% NEW RATE 2011 + 10% NEW RATE 2011 + 10% + NEW RATE CURRENT RATE RATE 5% RATE INCREASE _ INCREASE CUSTOMER CHARGE $16.54 $.827 $17.37 $1.65 $18.19 $.9095 $19.10 1. ENERGY CHARGE/KWH $.09901 $.0049505 $.1039605 $.009901 $.108911 $.005455 $.1143565 2. FUEL ADJUST $.065908 $.065908 $.065908 $.065908 $.065908 CHARGE/KWH* Adjusted Adjusted Adjusted Adjusted Adjusted Monthly Monthly Monthly Monthly Monthly TOTAL CHARGE/KWH** $.164918 $.1698685 $.174819 $.180265 * July 2011 Fuel Charge ** Energy Charge + Fuel Adjustment Charge 13 TABLE 11: SEWARD SMALL GENERAL SERVICE MONTHLY RATE COMPARISON (5 AND 10% RATE INCREASE) SMALL 2011 2011 +5% NEW RATE 2011 + 10% NEW RATE 2011 + 10% + NEW RATE GENERAL CURRENT RATE RATE 5% SERVICE RATE INCREASE INCREASE CUSTOMER CHARGE $33.08 $1.65 $34.73 $3.31 $36.39 $1.82 $38.21 1. ENERGY CHARGE/KWH $.11421 $.0057105 $.1199205 $.01142 $.125631 $.00628155 $$.13191255 2. FUEL ADJUST $.065908 $.065908 $.065908 $.065908 $.065908 CHARGE/KWH* Adjusted Adjusted Adjusted Adjusted Adjusted Monthly Monthly Monthly Monthly Monthly TOTAL CHARGE/KWH** $.180118 $.185829 $.191539 $.19782055 * July 2011 Fuel Charge ** Energy Charge + Fuel Adjustment Charge 14 TABLE lm: SEWARD LARGE GENERAL SERVICE MONTHLY RATE COMPARISON (5 AND 10% RATE INCREASE) LARGE 2011 2011 +5% NEW RATE 2011 + 10% NEW RATE 2011 + 10% + NEW RATE GENERAL CURRENT RATE RATE 5% SERVICE RATE INCREASE INCREASE CUSTOMER CHARGE $33.08 $1.65 $34.73 $3.31 $36.39 $1.8195 $38.21 1. ENERGY $.08181/ $.0040905/ $.0859005/ $.008181/ $.089991/ $.00449955/ $.09449055/ CHARGE/KWH $.04891 $.0024455 $.0513555 $.004891 _ $.053801 $.0026905 $.05649105 2. FUEL ADJUST $.065908 $.065908 $.065908 $.065908 $.065908 CHARGE/KWH* Adjusted Adjusted Adjusted Adjusted Adjusted Monthly Monthly Monthly Monthly Monthly TOTAL $.147718/ $.1518085/ $.155899/ $.16039855/ CHARGE/KWH** $.114818 $.1172635 $.119709 $.12239905 DEMAND CHARGE/KW $14.49 $.7245 $15.21 $1.45 $15.94 $.797 $16.74 * July 2011 Fuel Charge ** Energy Charge + Fuel Adjustment Charge 15 TABLE ln: SEWARD RESIDENTIAL: MONTHLY BILL COMPARISON (5 AND 10% RATE INCREASE) (BASED ON 600KWH/MONTH) RESIDENTIAL EXAMPLE ELECTRICITY BILL* TOTAL EXAMPLE INCREASE Current Rate $16.54 + ($.164918 x 600) = $115.49 5% Increase $17.37 + ($.169869 x 600) = $119.29 $3.80 10% Increase $18.19 + ($.174819 x 600) = $123.08 $7.59 10% + 5% Increase $19.10 + ($.180265 x 600) _ $127.26 $11.77 16 TABLE lo: SEWARD SMALL GENERAL SERVICE: MONTHLY BILL COMPARISON (5 AND 10% RATE INCREASE) (BASED ON 1500KWH/MONTH) SMALL GENERAL EXAMPLE ELECTRICITY BILL* TOTAL EXAMPLE INCREASE SERVICE Current Rate $33.08 + ($.180118 x 1500) = $303.26 5% Increase $34.73 + ($.185829 x 1500) = $313.47 $10.21 10% Increase $36.39 + ($.191539 x 1500) = $323.70 $20.44 10% + 5% Increase $38.21 + ($.197821 x 1500) = $334.94 $31.08 17 TABLE 1p: SEWARD LARGE GENERAL SERVICE: MONTHLY BILL COMPARISON (5 AND 10% RATE INCREASE) (BASED ON 1500KWH/MONTH) (BASED ON 21,000KWH/MONTH & 50KW) SMALL GENERAL EXAMPLE ELECTRICITY BILL* TOTAL EXAMPLE INCREASE SERVICE Current Rate $33.08 + ($.147718 x 10,000) + ($.114818 x 11,000) + ($14.49 x 50) = $3,497.76 5% Increase $34.73 + ($.1518085 x 10,000) + ($.1172635 x 11,000) + ($15.21 x 50) = $3,603.22 $105.46 10% Increase $36.39 + ($.155899 x 10,000) + ($.119709 x 11,000) + ($15.94 x 50) = $3,709.18 $211.42 10% + 5% Increase $38.21 + ($.160399 x 10,000) + ($.122399 x 11,000) + ($16.74 x 50) = $3825.59 $327.83 18 JOHN BIRD'S RECOMMENDATIONS FOR DISCUSSION: 1. City does not renew and/or renegotiate the three(3)special contracts. 2. City raise rates in 2012 and 2013 to meet what was requested for 2010 & 2011,plus an additional percent annual rate increase over a 5-year period to establish adequate cash reserves. 3. Continue adjusting electric rates annually based on CPI. 4. Determine reason/reasons City line loss rate is higher than national average and implement reduction program. 5. Establish service and special assessment districts as specified in the City Charter. 6. Replace all analog meters with digital meters and establish phased program for conversion to an automated metering system. 7. Charge customer or customers for all service extensions, regardless of cost. 8. Establish phased line replacement program. 9. Effective 1 January 2012 apply the annual$61,000 SMIC dock bond payment towards replacement of the electric department's capital equipment and infrastructure. 10. City accelerate implementing energy conservation measures internally (energy efficient lighting,equipment,policies,etc.) now. 11. City establishes a usage rate(KWH)on all service classes with usage above assessed a higher energy charge. 12. Begin building a cash reserve to replace fully depreciated equipment & infrastructure and to fund matching grants and/or low interest loans. 13. Expand capital equipment and infrastructure replacement plan to 10 years and annually fund 100% depreciation. 14. Contract now for a formal rate study and at least every 10 years. 15.Adopt and abide by recommendations future rate study recommendations. 19 7/29/2011 ofse q City Parking Department Fees, Permits, Free Parking Boat launch under Harbormasters' Dept Outline : Paid Parking Cash Balance, History Capital Needs Customer-Friendly Basic Questions Daily fees Season Passes Free Parking Winter Sunrise over Chamber of Commerce Compare other Cities 1 7/29/2011 Is Parking Fund Cash Balance Parking Fund Cash Balance History Parking Enterprise Fund-Cash Balance Balance at December 31,200X Parking Ford MRRF 8 months' Cash Cash Cash Total 2000 65,953 - 5.4 '5 65,953 2001 96,173 - 13.6 'S 96,173 2002 125,368 - 17.2 '5 125,368 2003 147,502 - 19.1 'S 147,502 2004 186,486 - 17.2 '5 186,486 2005 234,283 - 20.6 'S 234,283 2006 278,695 - 23.5 '5 278,695 2007 325,637 - 25.0 'S 325,637 2008 430,786 - 36.1 'S 430,786 2009 412,074 - 34.5 'S 412,074 2010 387,338 - 25.7 '$ 387,338 500.000 -- 450,000 400,000 ■ 350,000NMI ■ ■ 300.000 ■ ■ . 200,000 • •• •• • 150.000 ■MRRF 100.060 ill I, . . •M RE Fund 50.000 111•111• •'• • •• •• •• •• • Parking Fund Capital Needs PARKING ENTERPRISE FUND-Capital Infrastructure Needs Critical Risk High Risk Moderate Risk New Total 2012 150,000 50,000 150,000 36.000' 386.000 2013 150,000 95.000 245.000 2014 150,000 70,000 220,000 2015 - 10,000 250.000 260.000 2018 - - 600.000 600.000 2017 - - 2018 - - 600,000 600,000 2019 - - 300,000 300,000 2020 - 46,000' 46,000 2021 - 46,000' 46,000 $ 150,000 $ 50,000 $ 460,000 $ 2,043,000 $2,703,000 700,000 ------ 600,000 500,000 400,000 300,000 ■New 200,000 •Moderate Risk 100,000 •High Risk 0 M •Critical Risk o'' o� 04'' q° 4?o'� oa o4' 09 b> o'p 2 7/29/2011 Critical Needs 2012-2017 Highly Likely to fail in next 5 years ► Center lot patch, seal, stripe = est. $ 1 50,000 (this is the Center lot between Ray's and KFT) Note: Public Works Department suggests patching rather than paving; this saves $200,000. RFP is going out in August with goal of completing before end of October, or next spring depending on RFP responses High-Risk Needs 2012-2017 Highly Likely to fail within next 5 to 10 years ,Indoor parking needed for two electric-powered trucks = est. $50,000 Note: Must be done in 2012 due to demolition of Ray's library garage building currently housing trucks. Requires electricity for heat and monthly battery recharge. 3 7/29/2011 Moderate Risk Needs 2012-2017 Continuous Increasing Cost to Maintain and Operate Note: No mention of downtown parking. No parking lots. Downtown parking-related infrastructure is managed by Streets budget in General Fund. ❑North lot patch, seal, stripe $1 50K ❑South lot patch, seal, stripe $150K UPermit (employee) lot seal and stripe $100K UNE lot seal and stripe $50K ❑Parking office/chalet replacement - $10K ❑Total: = $460,000 to be paid from MRRF ► Automated Pay Stations, $1 8K ea NE Lot - 1 � SHU - 1 Replace existing Lukes = $46K/year in 2020 4 7/29/2011 Capital Needs (new) 201 7-2020 and beyond LINE lot - $41 5K = pave $250K; asphalt maint $95K; fence $50K; gravel $20K ❑North harbor lot repave - $600K ❑South harbor lot repave - $600K ❑Employee Permit lot repave - $300K Customer Friendly Items ► Lukes • Automated Pay Stations in all parking lots • solar-power, cell-phone connection ► Credit cards • About 2/3 customers pay by credit card ► People love the electric-powered trucks! ► Luke for Harbor Uses loaning Harbor 1 Luke for launch fees ► Combo passes ,, pay for launch & park in one transaction 5 7/29/2011 Q: Do Parking Revenues cover expenses? ► Yes, at $10. Revenues to Parking Enterprise Fund only, not shared to General Fund ► Yes. Revenues after expenses allow funds for operations and capital improvements. At $ 10/day, approx. $50-$ 100K surplus/yr. for capital ► Yes. Parking Enterprise Fund is healthy: - We'll bring in $270K - We'll spend $220K including PILT CAFR states $412K FY10 Q. Recommend fee increase? ► Fee increases are NOT recommended, although current fees will not cover all future capital needs. ► Admin recommends retaining $ 10 daily rate per site, per day. ► Admin recommends current rates $50 for Slipholder & Harbor Area Employee permits. ► Admin recommends $75 to $ 100 for Visitor and Vehicle-with-Trailer permits. 6 7/29/2011 F:er mrir„„r1 ► da Y I� "day" ends at midnight Recommend "day" = 24 hours • If we changed to 'day' = 24 hours, some customers would pay $5 per day. Most communities: $5 day, per phone survey • SPECIAL NOTE - W 4 are QUr customers? 1 Day: 950 2 days: 40 South lot 3 days: 3 0 June snapshot 1,000 customers More: 5 7/29/2011 Season Passessti9 9"0 May1 through Sept 30 ► Slip Holder Pass $ 50 ► Harbor Area Employee $ 50 ► Vehicle W/Trailer $75 • Increase to $100 ► Visitor's: $ 75 • Increase to: $100 ► If a space = $ 10, pay 8 days, then free ► Commercial Vehicle = 0 @ $ 350 ► Downtown Resident Parking = free Where is Free Parking? ► Center Lot: 2 hours Maximum ► Cannot pay for extra time Zero "Commercial Vehicle" sold Most abused lot • Scores of tickets written, 50% paid • Tickets = $35 (pay w/in 10 days = $25) • Seasonal permits not allowed • Consider an escalating fee or penalty r � 8 7/29/2011 Where is Free Parking? "The Sliver" by USCG: 2 hours maximum Downtown Parking Some street parking in the Harbor 30 min, no RVs, 2 hour "1 5 minute zone" in front of Harbormaster's The Center Lot Compare Daily Fees : . 411 ► Free Parking: Cordova, Valdez, UAS, Petersburg, Sitka /,' „\: ► $ 3/day: Fairbanks Airport, UAF ► $5/day: Juneau, Homer, Cooper Landing, Kenai River, Kenai Airport, AK State Fairgrounds ► $ 10 /day: Whittier, Seward ► $ 1 or $2 /hour: Juneau, Anchorage, UAA Parking 9 7/29/2011 Compare Permit Passes ► $ 10 month: Seward ($50/5 months) ► $ 15 month: Sitka ► $20 per month: Cordova ► $25 per season: AK Fairgrounds ► $40 seasonal: Cooper Landing ► $75 per month: Juneau ► $25 - $ 1 1 5 month employee permit: Anch ► $130 - $750 UAF student to "gold" annual ► $220: Whittier annual ► $230: season Homer ► $250: UAA annual *Many communities offer "launch + parking combo"discount . . . end 10